(Yicai Global) March 7 -- Chinese chemical pharmaceutical concern Zhejiang NHU Co. plans to invest CNY3.6 billion (USD570 million via its Heilongjiang-based unit in a biological fermentation project to improve the company's product mix.

NHU's board of directors passed the resolution yesterday, the company announced. The fermentation project, which has a construction period of two years, includes such products as erythrophyll, glucose, and starch milk. It is expected to generate operating revenue of CNY2 billion and a net profit of CNY708 million per year.

The company owns leading chemical synthesis technologies, said NHU, but in the future, fermentation replacing chemical synthesis will be the trend. The project can improve the firm's product mix, enlarge its production scale, and prepare for the sector's future development.

Fermentation refers to an anaerobic event where yeast breaks carbohydrates down into other compounds such as alcohol, industrial solvents and chemicals. It finds wide use in agriculture, industry, medicine, and environmental protection. Founded in 1999, NHU specializes in the production of fine chemicals, such as bulk pharmaceutical chemicals, healthcare products, spices, and food additives. It provides nutritional, medicinal, and environmental solutions to customers in over 100 countries around the globe.